Which Statement Relating to the Moving Average Method of Costing

question 47

Multiple Choice

Which statement relating to the moving average method of costing inventories, used with the perpetual inventory system, is correct?

• A) A new average cost is calculated after each sale.
• B) A new average cost is calculated after each purchase.
• C) A new average cost is calculated at the end of each month.
• D) A new average cost is calculated after each sale and each purchase.

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Definitions:

Quiet Period

The quiet period is a term used in finance, referring to a timeframe where a company about to go public is restricted in its ability to publicly discuss its business, to ensure fairness in the dissemination of company information.

1933 Act

The Securities Act of 1933, a federal law enacted as part of the New Deal, which regulates the offer and sale of securities to protect investors from fraud.

Exempt

To free from an obligation, duty, or liability to which others are subject.

Registration Requirements

Legal mandates for businesses or individuals to register with governmental authorities for licensure, tracking, or tax purposes.